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Author's profile photo Sven Denecken

SAP S/4HANA Value Series: Effcient Transformation with R & D

SAP S/4HANA is fast evolving as the preferred ERP solution which has received much publicity over the past year.

Customers are now starting to realize what SAP S/4HANA means to them. The benefits mentioned below are based on significant simplification and innovation to enterprises across the lines of businesses.

In this series, we will focus on the value that SAP S/4HANA implementation can bring to many different areas with the help of some examples of organizations who have embarked on this journey.

In this first of the value series blog, we will focus on the value in R&D function and an example customer, a manufacturer of consumer electronics who achieved great benefits in this area by the successful implementation of SAP S4/HANA.

A case among many

With SAP S/4HANA the value of Research & Development departments can be significantly raised. Not only can the revenue from new products be increased, research and development expenses can be optimized, and engineering change costs will be reduced. So let us take a look at the customer example we have with this case.

The manufacturing customer planned to grow its revenue and market share through better and faster product innovation and superior design of its features. The company had some strategic business priorities like quicker introduction of new innovative devices, expansion into new verticals, grow its international footprint and to extend its strategic marketing relationships with customers and business partners, when moving to SAP S/4HANA. In the slide blow you can see the numbers that prove the improvement achieved with this move.


Achieved Business Value

After the successful implementation, the business values were instantly noticeable. By leveraging the capabilities of SAP S/4HANA functionalities like Project Financials Control, Project Logistics Control, Recipe/Routing Management, Inspection Planning and Quality Engineering/Inspection, the customer was able to meet its stated objective of optimizing research and development expense and reducing engineering change cost.

There was an increase in the revenue from new products due to the proactive monitoring of the progress and financial performance of important projects, identifying deviations and at-risk activities.

The customer was able to achieve a 64% increase in the operating margin by gaining instant access to product metrics and visibility into new product pipeline status. And last but not least, by managing and centralizing the product information and development processes they were able to improve their time to market the new products by 24%. Embarking on the SAP S/4HANA journey thus helped the manufacturing customer to run simple, take faster business decision and achieve high level of customer satisfaction.

This is only one of many examples that prove SAP S/4HANA delivers the value needed to lead your business through the digital transformation. In the next blog of this series, we will see how two distinct enterprises leveraged the Asset Management functionality of SAP S/4HANA to achieve great value.

So stay tuned for more on this topic and follow us via @SAP and #S4HANA, or myself via @SDenecken

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